Foreclosure Alabama: Stop Foreclosure Using Right of Redemption Laws to Keep Your Home Even After It’s Sold At Auction
If you’re a homeowner in Alabama facing foreclosure, all is not lost – even if your home is sold at auction. Sound too good to be true? It’s not. Using Alabama’s right of redemption laws, you can stop foreclosure.
Here we give a brief overview of what right of redemption laws are, and provide specific info on how they can assist you in stopping foreclosure if you own a home in Alabama.
Mortgage Foreclosure: What is a Right of Redemption Law?
When a home is foreclosed on by the lender, there’s a certain time period the law allows for homeowners to buy their property back – even after it’s been sold at auction. This is known as the homeowner’s “right of redemption” period.
One important thing to note is that not all states have right of redemption laws. And for those that do, the laws vary widely from jurisdiction to jurisdiction. Following is what Alabama’s right of redemption law provides.
Alabama Foreclosure Law: How Does Right of Redemption Work?
If you lose your home to foreclosure in Alabama, the state’s right of redemption law gives you a year — 12 months – from the date it’s sold to “redeem” it.
How to Stop Foreclosure in Alabama Using the Right of Redemption Law
In order to get your property back, you must pay the full amount that is was owed on the property when it was sold. Additionally, you are also responsible for paying fees accumulated by the seller. These can be anything from late fees assessed to legal fees.
Alabama Foreclosure Law: When You Can’t Use the Right of Redemption Law to Get Your Home Back
If you sign a Deed in Lieu of Foreclosure, you cannot reclaim your home under right of redemption laws – even if you come up with the money somehow. The good news though is that if the lender accepts a deed in lieu of foreclosure, they forego their right to collect a deficiency judgment against you.
Alabama Foreclosure Law: Foreclosure FAQ — More Helpful Info on the Foreclosure Process
Following are a few more helpful pieces of info if you’re facing foreclosure in Alabama.
Judicial Foreclosure and Non-judicial Foreclosure in Alabama
There are two types of home foreclosure that take place in the United States – judicial foreclosure and non-judicial foreclosure. The primary difference in the two is whether your lender has to sue you in court to take your home away from you (judicial foreclosure), or whether they can sell your home on the courthouse steps without any input from the courts (non-judicial foreclosure).
Alabama has both kinds of foreclosures, but non-judicial foreclosure is the most common one used by lenders. While no court involvement is necessary in this type of home foreclosure, there is an exacting procedure that lenders must follow eg, notification of homeowner, before a sale can take place.
How Long Does the Home Foreclosure Process Take in Alabama?
When a home is foreclosed on by the lender, there’s a certain time period the law allows for homeowners to buy their property back – even after it’s been sold at auction. This is known as the homeowner’s “right of redemption” period.
One important thing to note is that not all states have right of redemption laws. And for those that do, the laws vary widely from jurisdiction to jurisdiction. Following is what Alabama’s right of redemption law provides.
Alabama Foreclosure Law: How Does Right of Redemption Work?
If you lose your home to foreclosure in Alabama, the state’s right of redemption law gives you a year — 12 months – from the date it’s sold to “redeem” it.
How to Stop Foreclosure in Alabama Using the Right of Redemption Law
In order to get your property back, you must pay the full amount that is was owed on the property when it was sold. Additionally, you are also responsible for paying fees accumulated by the seller. These can be anything from late fees assessed to legal fees.
Alabama Foreclosure Law: When You Can’t Use the Right of Redemption Law to Get Your Home Back
If you sign a Deed in Lieu of Foreclosure, you cannot reclaim your home under right of redemption laws – even if you come up with the money somehow. The good news though is that if the lender accepts a deed in lieu of foreclosure, they forego their right to collect a deficiency judgment against you.
Alabama Foreclosure Law: Foreclosure FAQ — More Helpful Info on the Foreclosure Process
Following are a few more helpful pieces of info if you’re facing foreclosure in Alabama.
Judicial Foreclosure and Non-judicial Foreclosure in Alabama
There are two types of home foreclosure that take place in the United States – judicial foreclosure and non-judicial foreclosure. The primary difference in the two is whether your lender has to sue you in court to take your home away from you (judicial foreclosure), or whether they can sell your home on the courthouse steps without any input from the courts (non-judicial foreclosure).
Alabama has both kinds of foreclosures, but non-judicial foreclosure is the most common one used by lenders. While no court involvement is necessary in this type of home foreclosure, there is an exacting procedure that lenders must follow eg, notification of homeowner, before a sale can take place.
How Long Does the Home Foreclosure Process Take in Alabama?
It can be exceedingly quick – only 2 to 30 months; although as in any other legal process, it can drag on longer if the homeowner puts up a fight.
If I Lose My Home to Foreclosure in Alabama, Can My Lender Still Sue Me for Monies Due?
In certain situations yes. For example, if your home is sold at auction for less than what was owed on it (eg, a short sale). However, as mentioned above, if you sign a deed in lieu of foreclosure (with no recourse), then no, your lender can’t sue you.
A Common Method Some Homeowners Use to Prevent Foreclosure in Alabama
One of the ways many homeowners try to stop foreclosure in Alabama is to file bankruptcy. When a homeowner files bankruptcy, it automatically halts the foreclosure process.
Experts advise though that before taking drastic measures like this – which affects your credit and personal finances for years to come, consult a foreclosure lawyer or other qualified legal or financial expert. Be sure to see a professional who is familiar with the laws in your jurisdiction so they can advise you on the best course of action to take after hearing the specifics of your situation.
Read More in the Foreclosure Business News Series on Right of Redemption Laws
Here are 7 things you should know about right of redemption laws.
California Foreclosure Law: The Right of Redemption
Florida Foreclosure Law: The Right of Redemption
Long-term, Lucrative Business Opportunity: Start a Foreclosure Cleanup Business. Read how one foreclosure cleaning business owner makes up to $40,000/wk.
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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.